HSBC will be blocking large withdrawls for England Customers

[MM78]

Prove it: Bank blocking some customers from making large withdrawals without ‘evidence’ of spending need.

If you bank at HSBC in England, don’t plan on making any large cash withdrawals. At least not without a good explanation. Or, maybe even a permission slip.

That’s because a previously unannounced change in banking policy is blocking some customers from making large withdrawals without “evidence” explaining why they need the money from their accounts .

The policy affects customers attempting withdrawals for amounts as little as £5,000 ($8,253).

HSBC says it’s all done in the name of customer protection.

"The reason being we have an obligation to protect our customers, and to minimize the opportunity for financial crime,” HSBC said in a statement. “However, following feedback, we are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals, and on its own, failure to show evidence is not a reason to refuse a withdrawal. We are writing to apologize to any customer who has been given incorrect information and inconvenienced."

The change in approach comes after the BBC aired reports from multiple HSBC customers who said they were denied in their recent attempts to make cash withdrawals.

Banking customer Stephen Cotton says he attempted to withdraw approximately $11,000 to repay a loan from his mother but was blocked from doing so.

"When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for,” he told the BBC. “They wanted a letter from the person involved."

Cotton says the bank wouldn’t even tell him how much he was allowed to withdraw under the new policy, which was not announced to customers when taking affect last November.

"So I wrote out a few slips. I said, 'Can I have £5,000?' They said no. I said, 'Can I have £4,000?' They said no. And then I wrote one out for £3,000 and they said, 'OK, we'll give you that.' "

In the U.S. there have been rumors of similar restrictions that major banks such as Citibank have denied. After the massive security breach at Target retail stores in December, JP Morgan did place a temporary limit on how much cash customers could withdraw from Chase ATM’s at Target stores and how much they could spend on their debit cards at one time. But that limit has since been removed.

A Conservative member of the British Parliament said the change in policy “infantilizes the customer.” However, the head of retail at the British Bankers Association defended the policy.

"I can understand it's frustrating for customers,” Eric Leenders told the BBC. “But if you are making the occasional large cash withdrawal, the bank wants to make sure it's the right way to make the payment."

[jeffweico]

What Bull****!!!! I'm sorry, but this makes me VERY ANGRY! Mostly, because it will probably come to the USA soon.

I almost never make cash withdrawals over $1500 or so, but it is the principal involved.

If I have money in the bank, then it is MY money, not the bank's money. By doing this, they are telling me that I need to explain my reasons for making the withdrawal and then they will approve or deny it, most likely (I am assuming) in their sole discretion. So, what it boils down to is that if I want to spend my own money, I need the bank's permission.

They say they are doing this to protect consumers.

What about protecting consumers and taxpayers from the boneheaded moves these banks have been making since 2005??? Negative equity mortgages, sub-prime loans, derivatives trading and all that other nonsense that almost collapsed the financial system? Who is going to protect me from that???

[jeffweico]

"I can understand it's frustrating for customers,” Eric Leenders told the BBC. “But if you are making the occasional large cash withdrawal, the bank wants to make sure it's the right way to make the payment."

OK... Now I can see what is happening. The banks figure that people are using cash, like the example of the son paying back a loan to his mother. This is grossly unfair to the banks, because they cannot charge FEES for cash transactions. They would much rather have customers sending the money via expensive bank transfers, etc. All in the name of consumer protection, of course.

WHAT UNBELIEVABLE GREEDY MOTHERF***ING DEVIOUS SELF-SERVING BAST*RDS!!!

I sincerely hope the British people complain to the government and put a stop to this nonsense before is spreads outside the UK.

[MM78]

If they tried that crap to the US there would be an uproar. Why aren't people in England fighting back?

A few weeks ago I got my Financial Aid Check that was around $3,500 and I went to the bank that issued it, they asked me if I planned on getting checks in this denomination often....I said, does it matter? lol. They verified the check was good and gave me my money.

[unkown5454]

This is more fuel for cryptocurrencies existence and offshore banking. How dumb.

I actually had a teller ask me what I was buying when I withdrew a large amount recently. That blew my f**king mind and took a lot for me to hold back some heavily insulting comments.

[GreenBean]

BBC News - HSBC imposes restrictions on large cash withdrawals

Quote from Aunite Beeb......

Implemented the change in November but never told customers.

Its directors sound like they used work for paypal

[JamesNorth101]

They have reversed there position on it now.

There was a fair number of very annoyed people.

Now they can ask for proof of what it will be spent on, but we can tell them to mind their own business and give us our money.

[GreenBean]

In true Board of directors' style, they have allowed staff at bracnh level to make the decision.

Since we are ( on the whole) a genteel forum, I will not show you the copy of the email from a friend who works for HSBC in the UK.

Made even me blush

[donkeykong2012]

Originally Posted by Greenie

In true Board of directors' style, they have allowed staff at bracnh level to make the decision.

Since we are ( on the whole) a genteel forum, I will not show you the copy of the email from a friend who works for HSBC in the UK.

Made even me blush

Greenie, can you send me a copy of this please?

I am genuinely very interested. I used to work in the Financial Sector.

[oompaloompa]

due to the laundering rules, I think they have had the discretion to flag a payment and ask for more info - but ask for solid proof, this is obviously just a huge extension of that....

I have been asked questions a few times I have taken out wads of cash by the bank....(not hsbc) and this has happened for many years.....I always thought it was because they were checking I was not laundering or avoiding tax eg. avoiding VAT.

but also paying money in, they ask questions too. I have had calls from the bank manager when alot of money hit my account and queries when I have paid in alot of cash. I did not like it, but I understand why they do it, they are checking you did not sell something and not pay tax on it for example. I also think they see cash in particular but also electronic going in or out and they see a chance to contact you and sell you services and call to see if they can manage the money. I had an inheritence queried, they literally called and said what is the reason for this money.

[rsot]

I operate primarily with HSBC...this is distressing

[jeffweico]

Come to think of it, we DO kind of have something like this in the USA. The government requires ALL businesses to report any cash transactions over $10,000. It also requires banks to report any "suspicious" transactions over $1,000 although it is not defined what constitutes "suspicious".

I also remember years ago, I was listed on my grandmother's accounts as the person who could access her accounts in the event of her death. She once gave her sister $5,000 to help with a balloon mortgage payment, and the banker called me to let me know just in case something was wrong. But she was in her late 80's at the time and the elderly here are frequently the victims of financial fraud.

So, I guess I can see banks asking, under certain circumstances, why the money is being withdrawn in cash - to prevent fraud - but to refuse to allow a customer access to their funds is just plain wrong.

[oompaloompa]

exactly this is already in the UK and is at the discretion of teller/manager.

say a massive sudden non descriptive payment goes in, you can see their interest in it as either sinister or helpful. Personally I see it as nosey but if someone was doing fraud on my account I would probably be annoyed if they did not call me!!

asking what the money is for is one thing, you can lie if you want, although how many transactions are there that do not involve some kind of tax and need to be in cash?? and do they ask for real proof eg. paperwork.....

[biglouis999]

Rather than withdrawing cash from the account to give to ones relative why not do a bank transfer? Unlike in the USA bank to bank transfer is free in the UK. There is an upper limit on my account as to how much I can transfer "instantly" (about 3000 GBP) but I can send it by a longer winded method which takes about 2/3 working days with no questions asked.

[GreenBean]

Originally Posted by rsot

I operate primarily with HSBC...this is distressing

Please, you are not living in the UK and facing having to deal with HSBC on a daily basis to get your own money.

Just imagine going to the bank and being questioned when you want 15 quid for hamster supplies...

on 2nd thoughts, that might be distressing if the wee hamster had no food or warmth.

[rsot]

My UK accounts operate with HSBC Greenie so, no not daily basis but do depend on somewhat

[oompaloompa]

Originally Posted by biglouis999

Rather than withdrawing cash from the account to give to ones relative why not do a bank transfer? Unlike in the USA bank to bank transfer is free in the UK. There is an upper limit on my account as to how much I can transfer "instantly" (about 3000 GBP) but I can send it by a longer winded method which takes about 2/3 working days with no questions asked.

we are talking about cash, but this is the precise point, can anyone think of a transaction type that cannot be done via card/transfer. there cannot be many nowadays....say you want to buy an antique at a market with cash, what will they say, why doesn't that trader have card facility? do they want the receipt or proof, do I need to bring them the grand piano to view???

[GreenBean]

Originally Posted by biglouis999

Rather than withdrawing cash from the account to give to ones relative why not do a bank transfer? Unlike in the USA bank to bank transfer is free in the UK. There is an upper limit on my account as to how much I can transfer "instantly" (about 3000 GBP) but I can send it by a longer winded method which takes about 2/3 working days with no questions asked.

That's what jeffweico alluded to: banks want transfers to get fees for their poor shareholders.

Keep in mind, the last of the cash generation is not in the Old Folks Home yet.

Many rely on cash rather than fancy bank transfers.

Ah, the good old days.

[oompaloompa]

do I want someone to come to my home and buy my car or my expensive furniture and take away instantly without cash in my hand??

I do not necessary mind explaining this to the bank but what I think happens next is they becomes the VAT/tax inspectors or want the hassle of providing proof and what proof is good enough for transactions between people selling/loaning etc...

I do not think it is just about fees, I think it is also a laundering thing..

[JamesNorth101]

Originally Posted by oompaloompa

we are talking about cash, but this is the precise point, can anyone think of a transaction type that cannot be done via card/transfer. there cannot be many nowadays....say you want to buy an antique at a market with cash, what will they say, why doesn't that trader have card facility? do they want the receipt or proof, do I need to bring them the grand piano to view???

Private sale of a car from an individual seller.

When I bought my last car the bank did ask what for, came across at the cashier just being a bit nosey tbh, but I had no issue telling them it was for a car. Gave me my cash and I went on my merry way

[GreenBean]

Motto in life is to have a good working relationship with your bank manager.

Tell them only what they need to know.

[oompaloompa]

yes but the next thing is they assume you are just 'sayin' it is for a car and want proof.
errr this is MY money - go to hell and dont come back....